The Federal Board of Revenue (FBR) has officially issued revised government property valuation rates, significantly impacting real estate transactions in the federal capital.
According to the notification, updated values for residential and commercial properties have been released, with rates increased by 15% to 75% depending on location and property type.
What the New Rates Mean
Under the new valuation schedule, market values of immovable properties will now be determined according to the updated rates. These revised values will be used to calculate:
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Capital Gains Tax (CGT)
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Withholding Tax (WHT)
This move is expected to raise transaction costs for buyers and sellers.
Rates for Constructed Structures
The notification states that:
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Constructed residential structures up to five years old are valued at Rs 3,000 per square foot
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Properties older than five years are valued at Rs 1,500 per square foot
These benchmarks will directly influence declared property values during sale and purchase documentation.
Old Rates Officially Cancelled
FBR has clarified that previous valuation tables stand cancelled following issuance of the new SRO. All future transactions must comply with the updated structure.
Impact on Property Market
Real estate analysts believe the revision may slow short-term transactions as investors reassess costs. However, authorities argue that updated valuations bring official rates closer to actual market values, improving tax transparency.
Buyers, sellers, and property agents are advised to review the updated valuation lists before entering any deals.
